Consider the Following Characteristics of a Particular Industry

question 94

Multiple Choice

Consider the following characteristics of a particular industry:
- the four- firm concentration ratio is 78 percent (in the relevant market)
- each firm produces output where P > MC
- firms advertise their product This industry is likely to be

• A) monopolistic.
• B) a cartel.
• C) perfectly competitive.
• D) one where each firm has limited market power.
• E) an oligopoly.

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Definitions:

Contractual Relations

The legal bonds and obligations that arise from agreements made between two or more parties.

International Rules

Regulations, standards, or guidelines that govern relations or activities between different countries, such as trade, maritime law, or diplomatic relations.

Customs Duties

Customs duties are taxes imposed on the importation and sometimes the exportation of goods, designed to regulate international trade and raise government revenue.

Customs Tariff Act

Legislation that sets the tariffs and duties imposed on goods that are imported or exported.